Key Differences Between B.C. and California Real Estate Contracts 

CategoryB.C. (Canada)California (USA)Contract NameContract of Purchase and Sale (CPS)Residential Purchase Agreement (RPA)Subjects/ConditionsCalled “subjects”, such as “subject to financing” or “subject to inspection.” Must be removed in writing by a certain date.Called “contingencies”, e.g., financing, inspection, appraisal. Often have removal periods (default 17 days).DepositTypically held in trust by the buyer’s brokerage or lawyer. Amount varies (5%-10% common).Typically held in escrow, usually 1%-3% of the purchase price. More standardized.Closing ProcessLawyers or notaries handle conveyancing. Title transfer and funds release happen on closing day.Escrow company coordinates title, funds, and closing documents. Escrow is central to the transaction.NegotiationsOffers are submitted in writing with subjects; counter-offers common. Less verbal negotiation.Similar written offer/counter-offer process, but can involve more agent negotiation and disclosures up front.Possession DateNegotiated separately; usually 1-2 days after closing but can be same day.Possession typically occurs at close of escrow(same day as closing).DisclosuresSellers must provide a Property Disclosure Statement (PDS), though not legally required.Mandatory disclosures (Transfer Disclosure Statement, Natural Hazard Disclosure, etc.) are required by law.Legal FrameworkGoverned by provincial laws (e.g., Real Estate Services Act of B.C.)Governed by state laws (e.g., California Civil Code, Department of Real Estate regulations).FinancingBuyers secure financing and include it as a subject in the offer. Lenders typically fund close to completion.Buyers often pre-approved; financing contingency built into the offer. Escrow handles lender disbursement.Term LengthsSubject removal period is negotiated (often 5–10 business days). Completion and possession dates are negotiable.Standard contingency periods (17 days), loan contingency (21 days), and 30-day escrow are common.